Rivian Automotive Inc (NASDAQ:RIVN) shares moved higher in afterhours trade on Tuesday as the electric vehicle (EV)-maker reported a smaller-than-expected third quarter loss and raised its full-year production guidance.
The Irvine, California-based startup now expects to produce 54,000 vehicles during 2023, up from its prior guidance of 52,000 vehicles.
During 3Q, it narrowed its net loss from $1.72 billion in the year-ago quarter to a loss of $1.37 million, attributed to ramping production and its efforts to reduce costs through commercial negotiations and engineering design changes.
Its loss per share improved from $1.57 in the year-ago quarter to a loss per share of $1.19. Analysts had expected a loss per share of $1.36.
The EV-maker’s revenue, however, fell short of Wall Street estimates.
Year-over-year, its revenue increased from $536 million to $1.34 billion, short of estimates of $1.36 billion.
Its sales growth was driven by the delivery of 15,564 vehicles during the quarter.
Rivian also said it continues to expect to achieve a positive gross profit by 2024.
“The key drivers of our path to positive gross profit are ramping production and leveraging our fixed costs, material cost reduction, and increasing average selling prices,” the company said in a letter to shareholders.
Rivian shares were up 2.5% at US$17.86 shortly following the release of its earnings report.
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